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Image courtesy of Shell's QGC business “We have a strong and diverse economy that is enhanced by the resource sector through employment, Traditional Resources - infrastructure and Western Downs improved services." The Western Downs is known as the “Queensland has the youngest coal- Paul McVeigh, Mayor Energy Capital of Queensland and is fired power fleet in Australia including Western Downs now emerging as the Energy Capital of the Kogan Creek Power Station, and an Regional Council. Australia. abundance of gas which will ensure the State has a reliable source of base load This reputation is due to strong energy for decades to come.” investment over the past 15 years by the Energy Production Industry - Ian Macfarlane, CEO, Mining is the second most productive (EPI) into large scale resource sector Queensland Resources Council industry in the Western Downs after developments in coal seam gas (CSG) As at June 2018, the Gross Regional construction, generating an output of 2 and coal. Product (GRP) of the Western Downs 2.23 billion in 2017/18. Gas and coal-fired power stations region has grown by 26.3% over a In 2017/18, the total value of local sales 2 feature prominently in the region with twelve-month period to reach $4 billion. was $759.2 million. Of these sales, oil a total of six active thermal power The resource industry paid $58 million and gas extraction was the highest, at 2 stations. in wages to 412 full time jobs (2017-18). 3 $615.7 million. Kogan Creek Power Station is one of The industry spent $136 million on In 2017/18 mining had the largest Australia's most efficient and technically goods and services purchased locally total exports by industry, generating advanced coal-fired power stations. It (398 local businesses benefitted), $1.48 billion. This is a 57% increase is one of the greenest coal-fired power and community contributions (108 over a twelve-month period. Of this, stations with the lowest environmental community organisations benefitted). 3 oil and gas extraction contributed $1.2 impacts of any coal-fired power station billion (82.36% of the mining industries nationwide. 0 It also brought an additional 1,594 contribution). 2 fulltime jobs to the Western Downs Dalby Bio-Refinery Ltd (DBRL) is region. 3 The mining industry contributed Australia’s first grain-to-ethanol facility. 34.7% ($1.27 billion) of value added by The refinery converts nearly 200,000 The Queensland Major Projects Pipeline industry sector in the Western Downs in metric tonnes of sorghum into 76 Report lists gas developments and 2017/18. Of this, oil and gas extraction million litres of ethanol and produces renewables as the sectors that are contributed 86.74%. 2 180 thousand tonne of Wet cake (WDG) driving growth in the Western Downs 4 Key pipeline infrastructure throughout or 65 thousand tonne of Dry DDG cake region. the Western Downs has allowed easier each year, employing approximately 50 MINING INDUSTRY: access to domestic and international people. 13 The mining industry, (including; coal markets. More recently, renewable energy mining, oil and gas extraction, metal farms have invested in the region with ore mining, non-metallic mineral multiple solar and wind energy farms mining and quarrying, and exploration either currently under construction or and other mining services), has had approved for construction. a presence in Western Downs region Positive economic growth in the Western since the opening of a coal mine in Downs clearly shows that the energy Warra in 1914. This initial mine stayed industry effectively co-exists with local in operation for five years. The Moonie industries, while improving communities Oil Field began production in 1961. The by providing jobs, infrastructure and Wilkie Creek coal mine commenced improved services. 1 mining in 1994 and closed in 2013. In 2006 the Kogan Creek Mine was constructed and in 2010 the Cameby Downs Mine opened. tsbe.com.au GAS RESOURCE OVERVIEW: Coal seam gas is primarily a methane based natural gas that is sourced from coal deposits. In Australia the major coal seam gas resources are found along the eastern coast in the onshore Surat and Bowen basins. Queensland’s Surat Basin in which the Western Downs sits, is currently the Australian region with the most coal seam gas activity. The oil and gas industry have and continue to bring infrastructure and investment to the region, providing new jobs, and strengthening and diversifying the economy. 5 & 11 • Oil and gas industry outputs increased from $59.3 million in 2014/15 to $1.8 billion in 2017/18 as industry projects across the Western Downs moved into the production stage. 2 • Increased outputs directly impacted industry exports and local sales figures. • Oil and gas extraction as of 2017/18 are $1.2 billion, compared to $409.7 million in 2015/16. 2 • Local sales by industry sector in oil and gas extraction went from NIL in 2015/16 to $615.7 million in 2017/18. 2 The Western Downs will play a key part for the release of future domestic gas tenements by the state government. GAS PROJECTS IN THE WESTERN DOWNS: THERMAL POWER STATIONS: • Arrow Energy’s Produce the Limit (PtL) in the Power stations throughout the Western Downs contribute to the economy in more ways than simply through energy Surat Basin. (Project enabling Arrow to run existing provision. compression facilities to their maximum In reference to the $90 million overhaul of the largest design limits, increasing their current Surat generating unit in Australia at CS Energy’s Kogan Creek production by up to 30%). Power Station in 2019, Energy Minister Dr Anthony Lynham • Senex Energy’s more than $200 million Project Atlas said that the overhaul would provide more than 400 jobs. in Wandoan/Miles. (Field Compression Processing This will benefit local suppliers, contractors and local arms facility and pipeline connection to Darling Downs of national and international businesses with flow on- benefits to local service industries such as accommodation Pipeline for new domestic gas tenements). providers, caterers and transport companies. 12 • Shell’s QGC business’s Project Ruby in Tara. There are six thermal power stations in the Western (Shell’s QGC Project Ruby is a program of gas field Downs: development that involves drilling up to 161 natural • Origin Energy’s Darling Downs Power Station has a gas wells to supply both domestic and LNG markets). generation capacity of 644MW. It is one of the • Arrow Energy’s QGCLNG Joint Venture in the Surat country’s most efficient *baseload power stations, running on coal seam gas from reserves in the Surat Basin. (This project represents a 27-year deal Basin. between Arrow and Shell’s QGC operated QCLNG • Braemar Power Project Pty Ltd’s Braemar Power joint venture. It will commercialise most of Arrow’s Station has a generation capacity of 504MW. gas reserves in the Surat Basin). It is strategically located adjacent to Surat Basin CSG fields, with a dedicated pipeline connection to nearby • Central Petroleum- Incitec Pivot JV’s Central gas fields. Petroleum- Bowen Basin in Miles. • Arrow Energy’s Braemar 2 Power Station has a • Origin is the upstream operator of Australia Pacific generation capacity of 519MW and is located 35km LNG, which is developing its substantial coal seam southwest of Dalby. It is a gas-fired *peaking power station. gas reserves across the Surat and Bowen basins • Shell’s QGC business's Condamine Power Station for Australian and export customers. In 2018, APLNG has a generation capacity of 144MW and is located provided around 30% of gas supply to the east coast near Miles. Using Combined Cycle Gas Turbine (CCGT) market. 6 technology, the station generates power with the gas turbine generator. The waste heat from the gas turbine is used to make steam to generate additional electricity. "Queensland has some of the • Arrow Energy’s Daandine Power Station has a world's highest quality coal and an generation capacity of 27.4MW and is located West of abundance of gas, which are both Dalby. significant contributers to jobs and • CS Energy’s Kogan Creek Power Station has a generation capacity of 750MW. It is fueled by black the State's economy." coal and contains the largest single generating unit in Australia, with one of the lowest environmental - Ian Macfarlane, CEO, Queensland impacts of any coal-fired power station nationwide. It Resources Council has 111 employees. 14 & 15 TRADITIONAL COAL MARKET OVERVIEW: RESOURCES QUICK Coal mining has contributed to the Western Downs economy in some capacity FACTS: since 1914. Coal is Australia’s largest energy resource, with around 60% of the nation’s electricity currently produced in coal-fired power stations. 7 The International Energy Agency (IEA) forecast Australia’s net exports of coal to Traditional resources increase by 20% by 2040. Australia’s coal earnings were targeted to generate over $67 billion in 2018/19, making coal the largest commodity exported in Australia, bought an additional 1,594 8 full time jobs to the region according to the Office of the Chief Economist. As at 2017/18, coal mining exports were $190.4 million. 2 PROJECTS UNDERWAY INCLUDE: • Yancoal’s Cameby Downs open cut operated by Macmahon Cameby Downs open cut mine started production in 2010. It consists of an open cut mine, coal handling and preparation plant (CHPP) and related The industry paid $58 infrastructure. The operation was previously approved to extract up to 2.8 million in wages to 412 million tonnes of run-of mine. (ROM) coal a year over a 45-year period, but as of 2019 this has been full time jobs in 2017/18 increased to 3.5 million tonnes a year over a 75-year period.
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